Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 27, Problem 5MCQ
To determine
The rate at which banks make loans to each other.
Expert Solution & Answer
Explanation of Solution
The federal funds rate is the name for the desired rate of interest set by the Federal Open Market Committee (FOMC). The overnight borrowing and lending of surplus reserves between commercial banks is the aim. Eight times a year, the Federal Reserve Program's policy-making authority, the FOMC, convenes to determine the targeted federal funds level, a component of its
Hence, from the above, we can conclude that the correct option is C.
Chapter 27 Solutions
Krugman's Economics For The Ap® Course
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